diff --git a/README.md b/README.md
index dd043763..1011b9dc 100644
--- a/README.md
+++ b/README.md
@@ -90,6 +90,7 @@ The full syntax and examples can be found [here](docs/cheatsheet_syntax.md).
 You can:
 
 - [setup your own config file](docs/config_file.md)
+- [set custom paths for your config file and cheat sheets](docs/paths_and_env_vars.md)
 - [change colors](docs/customization.md#changing-colors)
 - [resize columns](docs/customization.md#resizing-columns)
 - [change how search is performed](docs/customization.md#overriding-fzf-options)
diff --git a/docs/paths_and_env_vars.md b/docs/paths_and_env_vars.md
new file mode 100644
index 00000000..f0cdbb9c
--- /dev/null
+++ b/docs/paths_and_env_vars.md
@@ -0,0 +1,25 @@
+# Paths and Environment Variables
+
+Navi uses the [`directories-next`](https://crates.io/crates/directories-next) package, which 
+defines platform-specific standard locations of directories for config, cache and other data.
+
+Mac users, this is why your files are being stored in `~/Library/Application Support/navi`.
+
+To set custom paths for your config and cheat sheets, you can set the following
+environment variables:
+
+```zsh
+export NAVI_CONFIG="~/.config/navi/config.yaml"
+export NAVI_PATH="~/.local/share/navi"
+```
+Despite `$NAVI_PATH` being set, it will not be used when installing cheat
+sheets directly via navi's own commands. 
+
+For example when running `navi add repo <repo>`, the default paths as per the `directories-next` 
+package will still be used.
+
+To avoid this, you may simply clone repos via a regular `git clone` command,
+directly into `$NAVI_PATH`.
+
+Note! `navi info cheats-path` and `navi info config-path` display the *default* path, not 
+the path set by the user. [It is known that this is a little misleading!](https://github.com/denisidoro/navi/issues/664#issuecomment-1004721178).